NRS 278B.310 Development
entitled to services and use of facilities upon payment of impact fee.

NRS 278B.320 Seller
of property to provide buyer with notice of impact fee; contents of notice;
liability of seller.

NRS 278B.330 Limitation
on time for judicial review of final action, decision or order.

_________

GENERAL PROVISIONS

NRS 278B.010Definitions.As
used in this chapter, unless the context otherwise requires, the words and
terms defined in NRS 278B.020 to 278B.140, inclusive, have the meanings ascribed to
them in those sections.

NRS 278B.030“Drainage project” defined.“Drainage
project” means any natural and artificial watercourses, water diversion and
water storage facilities, including all appurtenances and incidentals necessary
for any such facilities.

NRS 278B.040“Facility expansion” defined.“Facility
expansion” means the expansion of the capacity of an existing facility
associated with a capital improvement to serve new development. The term does
not include the repair, maintenance or modernization of a capital improvement
or facility.

NRS 278B.050“Impact fee” defined.“Impact
fee” means a charge imposed by a local government on new development to finance
the costs of a capital improvement or facility expansion necessitated by and
attributable to the new development. The term does not include a tax for the
improvement of transportation imposed pursuant to NRS 278.710.

NRS 278B.060“Land use assumptions” defined.“Land
use assumptions” means projections of changes in land uses, densities,
intensities and population for a specified service area over a period of at
least 10 years and in accordance with the master plan of the local government.

NRS 278B.083“Park project” defined.“Park
project” means real property, turf, trees, irrigation, playground apparatus,
playing fields, areas to be used for organized amateur sports, play areas,
picnic areas, horseshoe pits, trails, jogging and pedestrian paths, tennis
courts, areas designated for the use of skateboards and other recreational
equipment or appurtenances which are designed to serve natural persons,
families and small groups and which are used for a park that is not larger than
50 acres in area. The term does not include auditoriums, arenas, bandstand and
orchestra facilities, bathhouses, clubhouses, community centers that are more
than 3,000 square feet in floor area, golf course facilities, greenhouses,
swimming pools, zoo facilities or similar recreational facilities.

NRS 278B.090“Sanitary sewer project” defined.“Sanitary
sewer project” means facilities for the collection, interception,
transportation, treatment, purification and disposal of sewage, including all
appurtenances and incidentals necessary for any such facilities.

NRS 278B.100“Service area” defined.“Service
area” means any specified area within the boundaries of a local government in
which new development necessitates capital improvements or facility expansions
and within which new development is served directly and benefited by the
capital improvement or facility expansion as set forth in the capital
improvements plan. The term does not include any area that makes up the entire
area of a local government, unless the local government is a city whose
population is less than 15,000 or a county whose population is less than
15,000.

NRS 278B.110“Service unit” defined.“Service
unit” means a standardized measure of consumption, use, generation or discharge
which is attributable to an individual unit of development calculated for a
particular category of capital improvements or facility expansions.

NRS 278B.120“Storm sewer project” defined.“Storm
sewer project” means facilities for the collection, interception,
transportation and disposal of rainfall and other storm waters, including all
appurtenances and incidentals necessary for any such facilities.

NRS 278B.130“Street project” defined.“Street
project” means the arterial or collector streets or roads which have been
designated on the streets and highways plan in the master plan adopted by the
local government pursuant to NRS 278.220,
including all appurtenances, traffic signals and incidentals necessary for any
such facilities.

NRS 278B.140“Water project” defined.“Water
project” means facilities for the collection, transportation, treatment,
purification and distribution of water, including all appurtenances and
incidentals necessary for any such facilities.

1. Before imposing an impact fee, the
governing body of the local government must establish by resolution a capital
improvements advisory committee. The committee must be composed of at least
five members.

2. The governing body may designate the
planning commission to serve as the capital improvements advisory committee if:

(a) The planning commission includes at least one
representative of the real estate, development or building industry who is not
an officer or employee of the local government; or

(b) The governing body appoints a representative
of the real estate, development or building industry who is not an officer or
employee of the local government to serve as a voting member of the planning
commission when the planning commission is meeting as the capital improvements
advisory committee.

3. The capital improvements advisory
committee shall:

(a) Review the land use assumptions and determine
whether they are in conformance with the master plan of the local government;

(b) Review the capital improvements plan and file
written comments;

(c) Every 3 years file reports concerning the
progress of the local government in carrying out the capital improvements plan;

(d) Report to the governing body any perceived
inequities in the implementation of the capital improvements plan or the
imposition of an impact fee; and

(e) Advise the local government of the need to
update or revise the land use assumptions, capital improvements plan and
ordinance imposing an impact fee.

NRS 278B.160Imposition and purpose of impact fee; costs that may be
included; property of school district exempt.

1. A local government may by ordinance
impose an impact fee in a service area to pay the cost of constructing a
capital improvement or facility expansion necessitated by and attributable to
new development. Except as otherwise provided in NRS
278B.220, the cost may include only:

(a) The estimated cost of actual construction, including,
without limitation, the cost of connecting a capital improvement or facility
expansion to a line or facility used to provide water or sewer service;

(b) Estimated fees for professional services;

(c) The estimated cost to acquire the land; and

(d) The fees paid for professional services
required for the preparation or revision of a capital improvements plan in
anticipation of the imposition of an impact fee.

2. All property owned by a school district
is exempt from the requirement of paying impact fees imposed pursuant to this
chapter.

1. A description of the existing capital
improvements and the costs to upgrade, improve, expand or replace those
improvements to meet existing needs or more stringent safety, environmental or
regulatory standards.

2. An analysis of the total capacity,
level of current usage and commitments for usage of capacity of the existing
capital improvements.

3. A description of any part of the
capital improvements or facility expansions and the costs necessitated by and
attributable to the new development in the service area based on the approved
land use assumptions.

4. A table which establishes the specific
level or quantity of use, consumption, generation or discharge of a service
unit for each category of capital improvements or facility expansions.

5. An equivalency or conversion table
which establishes the ratio of a service unit to each type of land use,
including but not limited to, residential, commercial and industrial uses.

6. The number of projected service units
which are required by the new development within the service area based on the
approved land use assumptions.

7. The projected demand for capital
improvements or facility expansions required by new service units projected
over a period not to exceed 10 years.

NRS 278B.180Public hearing to consider land use assumptions; notice of
hearing.

1. A local government which wishes to
impose an impact fee must set a time at least 20 days thereafter and place for
a public hearing to consider the land use assumptions within the designated
service area which will be used to develop the capital improvements plan.

2. The notice must be given:

(a) By publication of a copy of the notice at
least once a week for 2 weeks in a newspaper of general circulation in the
jurisdiction of the local government.

(b) By posting a copy of the notice at the
principal office of the local government and at least three other separate,
prominent places within the jurisdiction of the local government.

3. Proof of publication must be by
affidavit of the publisher.

4. Proof of posting must be by affidavit
of the clerk or any deputy posting the notice.

5. The notice must contain:

(a) The time, date and location of the hearing;

(b) A statement that the purpose of the hearing
is to consider the land use assumptions which will be used to develop a capital
improvements plan for which an impact fee may be imposed;

(c) A map of the service area to which the land
assumptions apply; and

(d) A statement that any person may appear at the
hearing and present evidence for or against the land use assumptions.

NRS 278B.190Approval of land use assumptions; development of capital
improvements plan; public hearing to consider adoption of plan and imposition
of impact fee; notice of hearing.

1. The governing body of the local
government shall approve or disapprove the land use assumptions within 30 days
after the public hearing.

2. If the governing body approves the land
use assumptions, it shall develop or cause to be developed a capital
improvements plan.

3. Upon the completion of the capital
improvements plan, the governing body shall set a time at least 20 days
thereafter and place for a public hearing to consider the adoption of the plan
and the imposition of an impact fee.

4. The notice must be given:

(a) By publication of a copy of the notice at
least once a week for 2 weeks in a newspaper of general circulation in the
jurisdiction of the local government.

(b) By posting a copy of the notice at the
principal office of the local government and at least three other separate,
prominent places within the jurisdiction of the local government.

5. Proof of publication must be by
affidavit of the publisher.

6. Proof of posting must be by affidavit
of the clerk or any deputy posting the notice.

7. The notice must contain:

(a) The time, date and location of the hearing;

(b) A statement that the purpose of the hearing
is to consider the adoption of an impact fee;

(c) A map of the service area on which the
proposed impact fee will be imposed;

(d) The amount of the proposed impact fee for
each service unit; and

(e) A statement that any person may appear at the
hearing and present evidence for or against the land use assumptions.

1. On the date and at the place fixed for
the hearing any person may, by written complaints, protests or objections,
present his or her views concerning the proposed impact fee to the governing
body, or present them orally, and the governing body may adjourn the hearing
from time to time.

2. After the hearing has been concluded,
after all written complaints, protests and objections have been read and
considered, and after all persons wishing to be heard in person have been
heard, the governing body shall consider the arguments, if any, and any other
relevant material put forth, and shall by resolution or ordinance, pass upon
the merits of each such complaint, protest or objection.

3. Any complaint, protest or objection to
the regularity, validity and correctness of the proceedings and instruments
taken, adopted or made before the date of the hearing shall be deemed waived
unless presented in writing at the time and in the manner set forth in this
section.

1. The governing body of the local
government shall approve or disapprove the adoption of the capital improvements
plan and the imposition of an impact fee within 30 days after the public
hearing.

2. If the governing body approves the plan
and the imposition of the impact fee, it shall adopt an ordinance providing
that all the impact fees collected must be deposited in an interest-bearing
account which clearly identifies the category of capital improvements or
facility expansions within the service area for which the fee was imposed.

3. The records of the account into which
the impact fees were deposited must be available for public inspection during
ordinary business hours.

4. The interest and income earned on money
in the account must be credited to the account.

NRS 278B.220Inclusion of costs of financing in amount of impact fee.Projected interest charges and other finance
costs may be included in calculating the amount of impact fees if the money is
used for the payment of principal and interest on the portion of the bonds,
notes or other obligations issued by or on behalf of the local government to
finance the capital improvements or facility expansions identified in the
capital improvements plan as being necessitated by and attributable to new
development.

NRS 278B.225Impact fee to pay cost of street project: Ordinance to
cumulatively increase fee on automatic basis to adjust for inflation; time at
which such increases become effective.

1. The governing body of a local
government which imposes an impact fee to pay the cost of constructing a street
project may include a provision in the ordinance imposing the impact fee or
adopt a separate ordinance providing that each year in which the governing body
does not adopt any revisions to the land use assumptions or capital
improvements plan or otherwise increase the impact fee, the current amount of
the impact fee is cumulatively increased:

(a) By a percentage equal to the average
percentage of increase in the Consumer Price Index for West Urban Consumers for
the preceding 5 years; or

(b) By 4.5 percent,

Ê whichever is
less.

2. Upon inclusion of a provision in the
ordinance imposing the impact fee or the adoption of a separate ordinance
authorized by subsection 1, no further action by the governing body is
necessary to effectuate the annual increases.

3. Each increase authorized pursuant to
this section becomes effective 1 year after:

(a) The date upon which the impact fee initially
becomes effective;

(b) The date the governing body adopts a revised
capital improvements plan; or

(c) The effective date of any previous increase
in the impact fee pursuant to this section,

1. The impact fee per service unit,
excluding the amount of any increase authorized pursuant to NRS 278B.225, must not exceed the amount determined
by dividing the costs of the capital improvements described in subsection 3 of NRS 278B.170 by the total number of projected service
units described in subsection 6 of NRS 278B.170.

2. If the number of new service units
projected over a period is less than the total number of new service units
shown by the approved land use assumptions at full development of the service
area, the maximum impact fee which may be charged per service unit, excluding
the amount of any increase authorized pursuant to NRS
278B.225, must be calculated by dividing the costs of the part of the
capital improvements required by the new service units described in subsection
7 of NRS 278B.170 by the projected new service
units described in that subsection.

3. The impact fee may be collected at the
same time as the fee for issuance of a building permit for the service unit or
at the time a certificate of occupancy is issued for the service unit, as
specified in the ordinance.

NRS 278B.240Credits against impact fees; reimbursement of school district
for certain costs.

1. If an owner is required by a local
government, as a condition of the approval of the development, to construct or
dedicate, or both, a portion of the off-site facilities for which impact fees other
than for a park project are imposed, the off-site facilities must be credited
against those impact fees.

2. If a school district is required by a
local government to construct or dedicate, or both, a portion of the off-site
facilities for which impact fees are imposed, the local government shall, upon
the request of the school district, reimburse or enter into an agreement to
reimburse the school district for the cost of the off-site facilities
constructed or dedicated, or both, minus the cost of the off-site facilities
immediately adjacent to or providing connection to the school development which
would be required by local ordinance in the absence of an ordinance authorizing
impact fees.

(b) Dedicate land pursuant to NRS 278.4979 or otherwise dedicate or
improve land, or both, for use as a park; or

(c) Construct or dedicate a portion of the
off-site facilities for which impact fees for a park project are imposed,

Ê the owner is
entitled to a credit against the impact fee imposed for the park project for
the amount of the residential construction tax paid, the fair market value of
the land dedicated, the cost of any improvements to the dedicated land or the
cost of the off-site facilities dedicated or constructed, as applicable.

1. The local government shall, upon the
request of an owner of real property for which an impact fee has been
collected, refund the impact fee and any interest and income earned on the
impact fee by the local government, if:

(a) After collecting the fee the local government
did not begin construction of the capital improvement or facility expansion for
which the fee was collected within 5 years after collecting the fee; or

(b) The fee, or any portion thereof, was not
spent for the purpose for which it was collected within 10 years after the date
on which it was collected.

2. The local government shall, upon the
completion of the capital improvement or facility expansion identified in the
capital improvements plan or upon expenditure of fees collected from a
development, recalculate the impact fee for that development by using the
actual costs of the capital improvement or facility expansion or the actual
costs of those capital improvements or facility expansions completed and
engineering estimates of those capital improvements or facility expansions to
be completed within the service area.

3. If the impact fee based on the cost or
recalculated cost is less than the impact fee paid, the local government shall
refund:

(a) The difference if the actual costs are known;
or

(b) The difference if it exceeds the impact fee
paid by more than 10 percent, if estimates are used,

Ê and any
interest and income earned by the local government on the amount of money
refunded.

4. The local government shall refund any
impact fee or part thereof, and any interest and income earned by the local
government on the amount of money refunded, if it is not spent within 10 years
after the date of payment.

5. Each refund must be paid to the owner
of the property on record at the time the refund is paid. If a local government
paid the impact fee, the refund must be paid to that local government.

6. Any limitation of time established by
this section is suspended for any period, not to exceed 1 year, during which
this State or the Federal Government takes any action to protect the
environment or an endangered species which prohibits, stops or delays the
construction of the capital improvement or facility expansion for which an
impact fee was collected.

NRS 278B.270Collection of additional impact fees.After
the collection of the impact fee no additional impact fees may be collected for
the same service unit. If the number of service units increases, the impact fee
must be limited to the amount which is attributable to the additional service
units.

1. Each local government which imposes an
impact fee shall review and may revise the land use assumptions and capital
improvements plan at least once every 3 years. The 3-year period begins upon
the adoption of the capital improvements plan by the local government.

2. Upon the completion of the revised
capital improvements plan, the local government shall set a time at least 20
days thereafter and place for a public hearing to discuss and review the
revision of the plan and whether the revised plan should be adopted.

3. The notice must be given:

(a) By publication of a copy of the notice at
least once a week for 2 weeks in a newspaper of general circulation in the
jurisdiction of the local government.

(b) By posting a copy of the notice at the
principal office of the local government and at least three other separate,
prominent places within the jurisdiction of the local government.

4. Proof of publication must be by
affidavit of the publisher.

5. Proof of posting must be by affidavit
of the clerk or any deputy posting the notice.

6. The notice must contain:

(a) The time, date and location of the hearing;

(b) A statement that the purpose of the hearing
is to consider the revision of the land use assumptions, capital improvements
plan and the imposition of an impact fee;

(c) A map of the service area for which the
revision is being prepared; and

(d) A statement that any person may appear at the
hearing and present evidence for or against the revision.

NRS 278B.300Adoption of revised capital improvements plan.The governing body of the local government
shall approve or disapprove the adoption of the revised capital improvements
plan, the land use assumptions and the imposition of an impact fee within 30
days after the public hearing.

NRS 278B.320Seller of property to provide buyer with notice of impact fee;
contents of notice; liability of seller.

1. The seller of any property who has
actual or constructive notice of the imposition or pending imposition of an
impact fee on that property which has not been paid in full shall give written
notice of the fee to the buyer before the property is conveyed.

2. The notice must contain:

(a) The amount of the impact fee which has not
yet been paid, if it has been imposed at the time the notice is given; and

(b) The name of the local government which
imposed or will impose the impact fee.

3. If the seller fails to give the notice
required pursuant to this section, the seller is liable to the buyer for any
amount of the impact fee which becomes payable on the property after the
conveyance.

NRS 278B.330Limitation on time for judicial review of final action, decision
or order.No action or proceeding
may be commenced for the purpose of seeking judicial relief or review from or
with respect to any final action, decision or order of any committee or other
governing body authorized by this chapter unless the action or proceeding is
commenced within 25 days after the date of filing of notice of the final
action, decision or order with the clerk or secretary of the committee or
governing body.